Does Indonesia Sustainability Reporting Award (ISRA) Cause Abnormal Return and Stock Trading Volume: A Comparative Analysis
Journal Title: Academic Journal of Economic Studies - Year 2019, Vol 5, Issue 1
Abstract
Indonesia Sustainability Reporting (ISRA) Award-winning companies promote the image of companies in the eyes of the public. In addition, award-winning companies cause their stock prices to change, representing by their stocks’ abnormal return and changes in trading volume of the company. This research is aimed at empirically examining the influence of the a Indonesia Sustainability Reporting Award (ISRA) on the abnormal return and stock trading volume of the ISRA award-winning and non-winning companies for 2010-2014 period. It also attempts to test the differences in abnormal return and stock trading volume before and after the companies won the ISRA Award. The results showed that: (1) The ISRA award has no influence on the abnormal return of award-winning and non-winning companies; (2) The ISRA award did not influence the stock trading volume of the award-winning and non-winning companies; (3) There was no difference in abnormal return before and after the companies won the ISRA award; (4) There was differences in abnormal returns before and after the companies won the ISRA award; (5) There was no difference in stock trading volume before and after the companies won the ISRA award; and (6) There was difference in stock trading volume before and after the companies won the ISRA award. These findings showed that the ISRA award was perceived by the firms as the usual award, thus failed to cause the abnormal returns and stock trading volume.
Authors and Affiliations
Hasan Basri, Cindi Paramita Februari, M. Shabri Abd. Majid
Keywords
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